Tag Archives: Turnaround Strategist

There are five stages in the turnaround process: management change, situation analysis, emergency action, business restructuring, and return to normality. Look at these individually to understand what should transpire at each stage, and what role each function in the company should play.

There is a process for guiding an entity through corporate renewal. It involves using a transferable set of skills to revitalize the property and restore it to a sale-worthy state. Then, you sell the entity and realize returns.

Investing in under-performers and rebuilding value has become a more acceptable practice. It can be very profitable if you know what to look for and how to execute, as many buyout firms and investors are finding out.

An outside director is a member of the board of directors or advisors who is not part of the executive management team. These individuals are helpful to your company because they rarely have conflicts of interest and they often see the big picture differently than insiders.

There is an abundance of funding available in the marketplace for good deals. The key wording in this statement is of course “good deals.” When a company is in trouble, it is rarely considered a good deal without some fixing.

Too often, companies die unnecessarily because most business leaders haven’t learned to recognize the symptoms of oncoming illness in their business. Leadership hasn’t had to deal with it in the past and is ill equipped when trouble sets in.

When all attempts to save the business have failed, strongly consider liquidating the company — either as a method to withdraw or as a catalyst to help you start over. Most business owners with a large debt burden choose bankruptcy over a workout because it is easier, but a workout might be your best option based on your situation and desired course of action after liquidation.

Business owners willing to invest in realistic incentives that reward employee achievements are likely to reap the proceeds. The key to success is to set realistic goals and time frames, hold managers accountable for performance, and communicate measurement and reward methodology — then step back and let them perform.